US President’s latest tariff threats on eight European Union countries over Greenland could result in a mega trade war as the EU nations prepare for countermeasures — leading to all the economies suffering a blow.
A trade war seems to be brewing now, and according to a report by CNN, both sides seem to be serious.
With Trump threatening tariffs on eight EU countries over his mission to acquire Greenland, leaders of the nations called an emergency meeting on Sunday, mulling countermeasures and even thinking about activating its trade bazooka called the Anti-Coercion Instrument (ACI).
Here is a snapshot of everything that’s going on between the US and EU over Greenland.
Donald Trump in his pursuit to acquire Greenland announced on Saturday that he would impose 10% tariff on goods imported from eight countries including Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom.
He further threatened that this would increase to 25% from June 1 if an agreement is not reached by that time.
Trump’s comments triggered an emergency meeting of EU leaders and representatives on Sunday.
The ambassadors who attended the meeting reached broad agreement on Sunday to intensify efforts to dissuade Trump’s threats. They also agreed to prepare retaliatory measures should the duties go ahead, EU diplomats said.
The joint statement by some of America’s closest allies signalled a possible turning point in the recent tensions over sovereignty and security, adding his threats “undermine transatlantic relations and risk a dangerous downward spiral.”
The possible retaliation include the option to include a package of its own tariff on 93 billion euros of US imports that were previously suspended for six months in August.
The retaliatory tariffs could automatically kick in on February 6 after the six-month suspension.
According to a report by Reuters and CNN, French President Emmanuel Macron asked the EU to activate its trade weapon called the Anti-Coercion Instrument (ACI), known more popularly as the “trade bazooka.”
This so-called trade bazooka could have broad effects on the US including limiting access to public tenders, investments or banking activity or restrict trade in services, in which the United States has a surplus with the bloc, like that in digital services.
European Commission President Ursula von der Leyen said in a statement on X that she spoke with NATO Secretary General Mark Rutte, French President Emmanuel Macron, UK Prime Minister Keir Starmer, German Chancellor Friedrich Merz, and Italian Prime Minister Giorgia Meloni to discuss recent tensions.
Following this, US President Trump issued a statement, saying, “NATO has been telling Denmark, for 20 years, that ‘you have to get the Russian threat away from Greenland.’ Unfortunately, Denmark has been unable to do anything about it. Now it is time, and it will be done!!!”